North Carolina Down Payment Assistance Systems

Online Merchant account - These programs would be the Mortgage Credit Certificate as well as the Down Payment Assistance System.

Also you purchase a property between January 1, 2009 and December 1, 2009 and if you qualify for one of the programs, you can even be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a house in the prior three years. It is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and average incomes. The MCC takes this a step further. An MCC “reduces your tax liability according to a share of the mortgage interest that you pay.

You can claim 20% of the interest you pay as a credit on your own federal income taxes in case you are eligible for the MCC. It is possible to save up to $2,000 on your taxes.

If you do qualify for the MCC, for 2009, you'll have the ability to join this with the $8,000 tax credit. This would reduce the tax liability of a buyer's .

Household income is defined as the “gross income of the mortgagor and any other individual anticipated to live in the residence who's 18 years of age or older.”

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Persons $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

The customer just needs to pay and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan outlined above. Like the MCC application, it may be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, can not be applied in conjunction together with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Men $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Home $210,000